Sony Ericsson braced for losses

Sony Ericsson has said that it expects to make a loss in the first three months of this year as sales continue to suffer in the economic downturn.

The company predicts a net loss before tax of between 340m euros (£320m; $466m) and 390m euros for the quarter.

Both retailers and distributors are cutting their stock, said the firm.

Other mobile phone firms have also seen sales fall as demand slows. Earlier this week, Nokia said that it would shed 1,700 jobs due to poor sales.

And previously mobile phone giant Motorola said it would cut 4,000 jobs, roughly 6% of its workforce, to reduce costs.

Sony Ericsson said it was likely to ship around 14 million phones during the first quarter.

It is due to announce its full quarterly results on 17 April.

Oil price soars above 50 dlrs on US Fed plan

Oil prices jumped above USD 50 after the Federal Reserve moved to inject another trillion dollars into the US financial system to boost the world's biggest economy.

New York's main futures contract, light sweet crude for delivery in April, ended USD 3.47 higher from yesterday's close to USD 51.61 per barrel, topping USD 50 for the first time in four months.

In early trading, the contract surged to USD 52.25 - the highest level since 28th November, 2008.

Brent North Sea crude for May delivery rose USD 3.01 to 50.67 in London after breaching USD 51.

Analysts attributed the price jump to Wednesday's announcement by the US Federal Reserve that it would pump USD 1.15 trillion into the financial system. The move also has pulled down the US dollar against key currencies.

"You need to put this action in the context of what has happened in the last few weeks in the market. There has been a shift in market sentiment," said Constanza Jacazio of Barclays Capital.

"From a market where demand was the only driver of price action and sentiment, there seems to have been a shift in a more balanced view," he said.

Crude futures had slid on Wednesday on news of a larger-than-expected increase in US energy reserves that highlighted weak American energy demand, but trimmed losses after news of the Fed plan.

Nineteen US states go after AIG

Nineteen US states are demanding that insurance giant AIG reveal details of bonuses paid to executives, so they can take steps to recover the funds.

This comes after New York Attorney General Andrew Cuomo said AIG had given him such a list on Thursday.

The US House of Representatives has passed a bill to levy a tax of 90% on the big bonuses paid to people working at firms that have received state aid.

The $165m (£114m) of bonuses have caused outrage across the US.

US President Barack Obama has denounced such bonuses, while even AIG boss Edward Liddy has described them as "distasteful".

AIG has taken $170bn in aid from the US government.

French aid prompts Renault move

French carmaker Renault is to shift some car production back to France after the guarantee of state aid.

Renault will take the production of its Clio Campus model to the Paris suburbs from Slovenia, creating 400 jobs, a French government minister said.

But the European Commission has demanded clarification about the plan, saying it may be protectionist.

France last month agreed to give Renault and Peugeot Citroen loans in return for keeping French plants open.

The plan to offer both Renault and Peugeot Citroen 3bn euros ($4bn; £2.8bn) sparked a row over protectionism after President Nicolas Sarkozy suggested that the money should not be used to rescue French-owned factories in Eastern Europe.

Luc Chatel, a junior minister for industry, announced Renault's decision in a local radio interview.

European concerns

EU Competition Commissioner Neelie Kroes told the BBC she was highly surprised and was seeking urgent clarifications. Ms Kroes said she received a pledge from Mr Chatel just a few weeks ago that the state bail-out for French car firms would not be linked to moving jobs to France.

If the aid proves to be conditional on this, Ms Kroes said it would be illegal under EU rules and should be paid back.

BBC correspondent, Oana Lungescu, said the clash comes at a pivotal point.

"This row couldn't have come at a worse moment for the EU, just as leaders meeting in Brussels are calling on the US and others to tackle the global crisis by avoiding all forms of protectionism," she said.

But Renault has defended its plans, saying its Slovenia factory was at full capacity and that the move to the Flins faciility in Paris would allow Renault to cope with additional orders.

In 2008, the French government said it would give consumers 1,000 euros if they traded in cars older than 10 years for a low-emission car.

'Increased production'

Renault spokeswoman Natalie Bourette said the move will not see job losses at Renault's Slovenian plant, which makes the Twingo and Clio models, but would rather be used as an opportunity to ramp up Slovenian production of the Twingo.

"Novo Mesto [the Slovenian plant] has no more available capacity, which is why we took the decision," she said.

Renault's claims were backed up by French President Nicolas Sarkozy.

"This is not about cutting jobs in Slovenia," he said.

"It doesn't take a single job from our Slovenian friends and it increases jobs for Flins," he added.

Meanwhile, Renault anticipates it will produce 8,000 Clio Campuses in Flins between June and October. Flins mostly produces the newer Clio III model.

Carmakers in Europe and beyond have been hit hard by the economic downturn.

Renault last month reported a steep fall in profits and abandoned its targets for 2009, blaming an economic crisis "of massive proportions". Sales in Europe were down more than 7%, it said.